Other blogs are reporting that there have been disturbances at Indymac and Wamu branches as customers cannot get at their money in a timely fashion. (e.g., a relative spent four hours in line at Indymac until they finally wised up and gave out numbers and most of the line was told to come back two days later!)
Why am I blogging this? I've been predicting we'd switch to the next real estate emotion, Panic, in the Fall. I still think that is the case. But here in California, I think we are one more large bank failure away; at most two bank failures.
My timeline still looks to be accurate. It looks like the FDIC will drag out the failures. But there is more uncertainty than ever.
For those of you who thought ever rising real estate prices were a good thing. Thanks, you just screwed 10,000 savers out of their money. Ten thousand is the number of Indymac customers who's deposits were not insured.
Am I the only one who finds it funny that the TV cameras focus on the "#1 Savings and Loan in LA" signs up at every Indymac?
Got Popcorn?
Neil
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5 comments:
Is Indymac really that prevalent in CA? I have never seen a branch of theirs. I googled them for the DC area, and it looks like there are only 5 branches spread out over the 40 mile radius area.
Ironically Washington Mutual isnt around here either...The closest branch is about 100 miles away in NJ.
Now, mortgage lending may be a different story. I have no idea how prevalent one or both of these guys may have been in the DC market.
Funny, the Indymac slogan I see the media show constantly is "You can count on us".
Is Indymac really that prevalent in CA?
Fairly common, over seven pages of hits on google maps for LA alone. While they had only ~200 branches, every one was run like a machine with tons of customers. They had a disproportionaetly large market share in the small business area (as does WaMu). I do not have the numbers... but I'll have to see if I can find them.
Indymac *was* the top Alt-A mortgage lender. #7 in the Nation in mortgages overall (not just Alt-A, but that was their focus). They specialized in lending in nice areas to good income professionals too!
Wikipedia's entry is worth the read:
http://en.wikipedia.org/wiki/Indymac
WaMu is huge out west. Its considered 'too big to fail,' yet its down to a one star rating. (In other words, in trouble.) It is the US's largest S&L. Gulp! With 2,600 branches... they're huge! Ok, not Citibank, but Citibank is #1 in loans and credit cards overall!
Here is one closer to home. Chevy Chase Bank, FSB of VA has been cut to a one star rating with a high risk on their 'safe and sound' rating by bankrate.com. Gulp! Ummm... its
Got Popcorn?
Neil
Sandman,
Too funny!
http://www.doctorhousingbubble.com/
indymac-indymac-history-and-
collapse-the-saga-of-the-second-largest-bank-failure-in-history-here-in-sunny-southern-california/
Broken up Url on the article. $500 million of non-insured deposits. Ouch! That's a lot of counting on them...
Got Popcorn?
Neil
One more comment: A relative tried to withdrawl their > $100k CD's from Indymac. $100k was easy. The remaining money, in a siblings name, will require an interview with the sibling before release; in August. :(
The next person in line was a father with a few hundred grand, but the CD's were all joint accounts with his children. Not a hesitation... he was cut a check for several hundred grand.
Sadly, this will replay a few more times this year.
Got Popcorn?
Neil
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